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Five Must Do's When Looking To Outsource

Mar. 11, 2011 12:26 AM ET2 Comments
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.
By: Audrey B.

Companies usually go through a careful process of assessment and evaluation before outsourcing a part of their business. But while tips on how to outsource or how to select an outsourcing company are prolific on the internet, very few if any, focus on those often overlooked but handy tips that you could make use of in your decision making process.

When you are looking to outsource, aside from considering all the usual aspects you must also make sure that you employ these Do’s to gain more insightful knowledge before finally deciding on an outsourcing company:
  • Do determine where your outsourced team will be working if you decide to outsource. Research the country, the city and the locality extensively. Assess economic factors as doing this affords you a better understanding of not just the outsourcing company, but also your operations down the line. An important consideration, as seen by the recent unrest in Egypt and the subsequent moves by outsourcing companies to herd out operations from there, is to assess political stability as well.
  • Do discuss their price extensively, even when it’s within your budget. This however, is not the same as haggling, rather, one should discuss their pricing so as to gain an idea of what drives the costs in their business and what factors would likely lead to changes in pricing later on if you do go ahead and partner with them. By having an idea of the movements in currency or the cost of utilities of the outsourcing company, you can then base your decision not just on their price now, but on a reasonable assumption of their prices later on.
  • Do prepare an outline of the work you are looking to outsource. Be able to state clearly what results you are expecting at the end of the work, as well as what results you expect in a daily, weekly and monthly basis. This not only helps in giving the outsourcing provider a guideline, but it also allows you to assess the work on your own, helping you identify areas of concern that you can then discuss later on with the outsourcing provider to rectify when you do pass the work on to them.
  • Do list your ideal requirements for the project. Consider security, infrastructure, and credentials in your requirements as these are all important points you need to assess an outsourcing provider on, especially if the work you are outsourcing is of a sensitive nature. Listing all these will help you narrow your list of potential vendors as well as help you determine who among the providers stand out amid others.
  • Do ask for the outsourcing company’s input. Ideally, a provider should be an expert on the service that they offer, and therefore, they will know what works and what doesn’t. Ask for samples of their work or even a proof of concept based on their input. By approaching the outsourcing partnership with an open mind, you are able to state what you require but also able to consider other options or consider new ways of looking at your process, all while assessing your provider. Most likely, the ones who know most about what their talking about will prove to be the most reliable as well.

By following these Do’s, you will undoubtedly gain more than just a reliable outsourcing partner but you will also gain a greater understanding not just of your outsourcing partner or your outsourced team, but also your own operations and processes.

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